WebMD Health (WBMD) 8-K WebMD Announces Second Quarter Financial Results

Exhibit 99.2

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2007		2006			2007		2006
Revenue	$	78,479	$	56,612		$	151,441	$	106,663
Costs and expenses:
Cost of operations		29,956		25,716			59,619		50,426
Sales and marketing		21,929		16,932			44,799		32,469
General and administrative		15,981		12,565			31,486		24,455
Depreciation and amortization		6,942		4,013			12,935		7,542
Interest income		3,051		1,468			5,036		2,916
Income (loss) before income tax provision		6,722		(1,146	)		7,638		(5,313	)
Income tax provision (benefit)		1,332		(293	)		1,542		(1,401	)
Net income (loss)	$	5,390	$	(853	)	$	6,096	$	(3,912	)
Net income (loss) per common share:
Basic	$	0.09	$	(0.02	)	$	0.11	$	(0.07	)
Diluted	$	0.09	$	(0.02	)	$	0.10	$	(0.07	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,071		56,054			57,023		56,054
Diluted		59,748		56,054			59,689		56,054

WEBMD HEALTH CORP.
CONSOLIDATED SEGMENT INFORMATION
(In thousands, except per share data, unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Revenue
Online Services:
Advertising and sponsorship	$	52,436		$	36,219		$	99,857		$	68,979
Licensing		19,799			12,304			39,914			23,746
Content syndication and other		653			1,096			1,537			1,972
Total Online Services		72,888			49,619			141,308			94,697
Publishing and Other Services		5,591			6,993			10,133			11,966
	$	78,479		$	56,612		$	151,441		$	106,663
Earnings (loss) before interest, taxes, depreciation, amortization and other non-cash items (“Adjusted EBITDA”) (a)
Online Services	$	14,042		$	9,006		$	27,034		$	16,867
Publishing and Other Services		1,113			593			728			(741	)
		15,155			9,599			27,762			16,126
Adjusted EBITDA per basic common share	$	0.27		$	0.17		$	0.49		$	0.29
Adjusted EBITDA per diluted common share (c)	$	0.25		$	0.17		$	0.47		$	0.28
Interest, taxes, depreciation, amortization and other non-cash items (b)
Interest income		3,051			1,468			5,036			2,916
Depreciation and amortization		(6,942	)		(4,013	)		(12,935	)		(7,542	)
Non-cash advertising		—			(1,189	)		(2,320	)		(2,794	)
Non-cash stock-based compensation		(4,542	)		(7,011	)		(9,905	)		(14,019	)
Income tax (provision) benefit		(1,332	)		293			(1,542	)		1,401
Net income (loss)	$	5,390		$	(853	)	$	6,096		$	(3,912	)
Net income (loss) per common share:
Basic	$	0.09		$	(0.02	)	$	0.11		$	(0.07	)
Diluted	$	0.09		$	(0.02	)	$	0.10		$	(0.07	)
Weighted-average shares outstanding used in computing basic and diluted net income (loss) per common share:
Basic		57,071			56,054			57,023			56,054
Diluted		59,748			56,054			59,689			56,054

(a)	See Annex A — Explanation of Non-GAAP Financial Measures
(b)	Reconciliation of Adjusted EBITDA to net income
(c)	Three and six months ended June 30, 2006 Adjusted EBITDA per share is calculated based on 58,092 and 57,905 diluted shares, respectively

WEBMD HEALTH CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)

	June 30,		December 31,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	213,357	$	44,660
Short-term investments		26,900		9,490
Accounts receivable, net		81,933		89,652
Current portion of prepaid advertising		2,363		2,656
Due from HLTH		—		143,153
Other current assets		5,232		5,360
Total current assets		329,785		294,971
Property and equipment, net		48,071		44,709
Prepaid advertising		7,433		9,459
Goodwill		221,356		225,028
Intangible assets, net		42,835		45,268
Other assets		499		530
	$	649,979	$	619,965
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued expenses	$	24,459	$	32,846
Deferred revenue		88,251		77,731
Due to HLTH		4,259		—
Total current liabilities		116,969		110,577
Deferred tax liability		5,944		5,367
Other long-term liabilities		9,655		7,912
Stockholders’ equity		517,411		496,109
	$	649,979	$	619,965

WEBMD HEALTH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)

	Six Months Ended
	June 30,
	2007			2006
Cash flows from operating activities:
Net income (loss)	$	6,096		$	(3,912	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		12,935			7,542
Non-cash advertising		2,320			2,794
Non-cash stock-based compensation		9,905			14,019
Deferred income taxes		577			(1,413	)
Changes in operating assets and liabilities:
Accounts receivable		7,719			4,221
Other assets		(44	)		(2,945	)
Accrued expenses and other long-term liabilities		(7,271	)		(1,364	)
Due (from) to HLTH		2,136			(667	)
Deferred revenue		10,519			9,984
Net cash provided by operating activities		44,892			28,259
Cash flows from investing activities:
Proceeds from maturities and sales of available-for-sale securities		95,256			171,000
Purchases of available-for-sale securities		(112,667	)		(192,000	)
Purchases of property and equipment		(9,764	)		(12,775	)
Cash paid in business combinations, net of cash acquired		—			(65,568	)
Net cash used in investing activities		(27,175	)		(99,343	)
Cash flows from financing activities:
Proceeds from issuance of common stock		5,723			—
Net cash transfers with HLTH		145,257			—
Net cash provided by financing activities		150,980			—
Net increase (decrease) in cash and cash equivalents		168,697			(71,084	)
Cash and cash equivalents at beginning of period		44,660			75,704
Cash and cash equivalents at end of period	$	213,357		$	4,620